What tax forms does a sole proprietor actually have to file each year?

As a sole proprietor you report business income and expenses on Schedule C, which flows into your Form 1040. If your net profit is $400 or more, you also file Schedule SE to calculate self-employment tax. Throughout the year you typically send quarterly estimated payments using Form 1040-ES. If you claim vehicle or home office deductions, those attach as part of Schedule C or on Form 8829 for the home office. Pay any independent contractors $600 or more and you must issue Form 1099-NEC. You do not file a separate business return, since the IRS treats a sole proprietorship as part of you. Keep clean records so Schedule C ties back to your bank statements.